Analysis

Debt Collectors Face Surge Of Suits After 11th Circ. Ruling

By Jon Hill (May 18, 2021, 9:37 PM EDT) -- The debt collection industry is under siege from a tidal wave of lawsuits unleashed over the past month by a recent Eleventh Circuit decision that is forcing a rethink of widespread outsourcing practices and prompting calls for federal regulators to intervene.

Analysis of federal court complaint data shows more than 120 new lawsuits have been filed across the country since late April that accuse debt collectors of violating federal law through their use of outside mail vendors to print and send demand letters to consumers.

This largely class action litigation piggybacks off the Eleventh Circuit's April 21 in Hunstein v. Preferred Collection...

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